SAN JUAN, Puerto Rico (Reuters) - Warren Buffett's new bond
insurer has applied for an insurance license in Puerto Rico and
was registering to do business in the commonwealth, the
president of the Government Development Bank, said on Monday.

Government officials hope to approve the bid by a new unit
of Berkshire Hathaway Inc <BRKa.N> by month's end, Jorge
Irizarry, president of the development bank, said.

The new insurer, Berkshire Hathaway Assurance Corp.,
received a license to operate in New York on December 28. In
addition to Puerto Rico, it also expected to expand into
California, Florida, Texas and Illinois, which are among the 10
largest issuers of municipal bonds.

Bond insurance is important for Puerto Rico because the
commonwealth's general obligation debt is rated "Baa3" by
Moody's Investors Service, a notch above junk.

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Insurance would allow Puerto Rico to reduce the perceived
risk of owning its debt and cut borrowing costs because
Buffett's insurer is expected to get the top "triple-A" rating.

(Reporting by John Marino and Anastasija Johnson; Editing
by Leslie Adler)